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AUSTRALIAN travellers could pay less than $10 a ticket to fly
domestically later this year when the budget carrier Tiger Airways,
part owned by Singapore Airlines, enters the market.

Tiger's chief executive, Tony Davis, said: "We are committed to
having the lowest cost base in Australia and we are committed to
offering the lowest fares in Australia. The bottom line for the
consumer is if all the airlines are trying to do that, it's going
to be a travel bonanza."

While short on detail about Tiger's plans, Mr Davis said its
launch fares would be in the "single digits". He said the airline
had established a strong customer following in Darwin, from which
it launched services to its home base in Singapore last year. Fares
on the route were as low as $S8 ($6.70) one way, he said. For its
planned launch of Singapore to Perth flights next month, Tiger is
offering $300 return fares (including taxes). "Low cost is what we
are about," Mr Davis said. "It's not just a gimmick, it's not just
a special promotion; it is the business model of the company."

Tiger was set up by Singapore Airlines, Ryanair and the private
equity firm Indigo Partners in 2004 to tap the booming Asian budget
aviation market. It competes head to head with the 44.5 per cent
Qantas-owned Jetstar Asia out of Singapore.

Tiger plans to operate five A320s in Australia by the end of the
year and hire 1000 staff "directly and indirectly". Jetstar
operates 23 planes domestically and Virgin Blue about 50.

Tiger has not decided where it will base its operations or where
it will fly. But on its website it has started a poll asking
Australians where they would like it to fly. Yesterday afternoon
Darwin was topping the poll, with Brisbane and Melbourne close
behind.

A Centre for Asia-Pacific Aviation consultant, Ian Thomas, said:
"Tiger is going to ignite an incredible price war in the Australian
market". But he said the carrier could have problems entering
Sydney, given space constraints at the domestic terminal.

Virgin Blue declined to comment on how it would respond.

Jetstar's chief executive, Alan Joyce, said the domestic market
was already competitive. "It's more competitive than it has ever
been," he said.

Qantas jet flying past the air traffic control tower at Sydney Airport.

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